Chile

Chile strengthening international tax co-operation, OECD says

Chile’s Finance Minister Felipe Larraín signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters, at a ceremony in Santiago. Mr Gurría applauded the country’s recent steps to boost information-sharing arrangements. This includes both Chile’s decision to become the 59th signatory to the Convention, as well as the August announcement that it would engage in automatic exchange of information for tax purposes with Colombia, Mexico and Peru, in the context of the Pacific Alliance.

“Today’s signing is very timely, given the recent political focus on tax matters, and in particular the high level of support for automatic exchange of information at the international level,” Mr Gurría said. “The G20 has declared automatic exchange of information as the new global standard, and have asked the OECD to work on developing it. Chile’s decision to sign this Convention, while implementing automatic exchange of information with partners Colombia, Mexico and Peru, helps move the agenda forward.” (Read the speech)

The Multilateral Convention provides for all forms of mutual assistance: exchange on request, spontaneous exchange, tax examinations abroad, simultaneous tax examinations and assistance in tax collection, while protecting taxpayers’ rights. It provides the option to undertake automatic exchange, while requiring an agreement between the Parties interested in this form of assistance.

To enter into force, the Convention must now be ratified by the Chilean Congress.

Mr Gurría encouraged the country to continue moving forward. “Increasing international co-operation will reinforce Chile’s ability to fight tax avoidance and evasion,” he said. “Chile has much to gain by co-operating with the growing number of countries signing the Convention. The only losers will be tax evaders who find they have fewer and fewer places to hide.”

The following jurisdictions are also covered by the Convention through territorial extension by Denmark: the Faroe Islands and Greenland; by territorial extension by the Netherlands: Aruba, Curaçao and Sint Maarten; and by territorial extension by the United Kingdom: the Cayman Islands, Montserrat and Turks and Caicos.